Sign In  |  Register  |  About Los Altos  |  Contact Us

Los Altos, CA
September 01, 2020 1:26pm
7-Day Forecast | Traffic
  • Search Hotels in Los Altos

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

KBRA Releases Research – KBRA’s Global Rating Stability and Transition Study: 2011-2023

KBRA releases a report examining the stability of KBRA’s ratings and how those ratings transitioned over 1-year, 3year, 5-year, and lifetime time horizons between 2011 and 2023. The ratings universe used in this study includes both published and unpublished long-term credit ratings (LTCR) assigned across all geographical regions, which are assigned to issuers, transactions, and securities using the same rating scale.

Key Takeaways

  • KBRA’s ratings have generally performed in accordance with their definitions, with investment-grade (IG) rated securities (BBB- or higher) exhibiting greater ratings stability than those rated non-investment grade (non-IG). For example, over 99.4% of KBRA-rated securities initially assigned a AAA remained AAA over a 1-year, 3-year, 5-year, and lifetime window.
  • Regardless of the observation window, IG rated securities exhibited greater than 95.6% stability, with high investment-grade (high-IG) rated securities (A- and higher) having a stability ratio of over 97.7%.
  • Meanwhile, non-IG securities were stable 91.4% of the time over a 1-year window, 83.6% over a 3-year window, 73.2% over a 5-year window, and 89.6% over the ratings’ lifetime window. The greater “instability” of non-IG ratings relative to IG ratings is to be expected, given the speculative nature of issuers and securities rated below BBB-.
  • Lifetime rating transitions were overwhelmingly positive, as upgrades outpaced downgrades by 4.5x. Furthermore, 82.6% of assigned ratings have been stable over their lifetime.

Click here to view the report.

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1004540

Contacts

Brian Ford, CFA, Head of Structured Finance Research

+1 646-731-2329

brian.ford@kbra.com



William Cox, SMD, Global Head of Corporate, Financial and Government Ratings

+1 646-731-2472

william.cox@kbra.com

Matthew McDonald, Senior Managing Director

+1 646-731-2414

matthew.mcdonald@kbra.com



Eric Thompson, SMD, Global Head of Structured Finance Ratings

+1 646-731-2355

eric.thompson@kbra.com

Business Development



Kate Kennedy, Senior Managing Director

+1 646-731-2348

kate.kennedy@kbra.com



Media



Adam Tempkin, Director of Communications

+1 646-731-1347

adam.tempkin@kbra.com

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 LosAltos.com & California Media Partners, LLC. All rights reserved.